Coinbase has proposed an alternative to stablecoins.
The leading exchange proposed inflation-pegged cryptocurrencies in response to the central banking crisis in the U.S.
Called ‘flatcoins’, the new cryptocurrencies would be pegged to inflation to try and offer holders an alternative form of stability when it comes to purchasing power and uncertainty.
Coinbase wants to develop a new type of stablecoin
With Coinbase’s new layer 2 blockchain Base on the way, the exchange is also considering the development of a new type of stablecoin.
Dubbed ‘flatcoins’ Coinabse wants to create an inflation-pegged cryptocurrency, inspired by the recent banking crisis in the U.S.
While stablecoins are pegged to traditional currencies, flatcoins would be pegged to inflation data and consumer price indexes.
We are particularly interested in ‘flatcoins’ — stablecoins that track the rate of inflation, enabling users to have stability in purchasing power while also having resiliency from the economic uncertainty caused by the legacy financial system
While the SEC issued Wells notices to tackle unregistered securities, retail staking platforms and stablecoins, Coinbase is slowly building its own decentralised platform and ecosystem with Base.
Some speculators believe Coinbase will eventually move completely into the DeFi realm and leave the centralised world behind as pressures from the U.S. government push crypto companies underground.